2024-05-01
The FTX estate is in the final stages of completing its second round of sales for locked Solana (SOL) tokens, with bids averaging around $100, as confirmed by five sources.
The estate is currently conducting an auction to sell 1.8 million SOL (equivalent to $232 million), a process that has been ongoing for the past few weeks.
Bids for the locked Solana tokens were accepted on April 25, with the deadline for KYC procedures and paperwork set for today.
According to three sources, bids for the tokens ranged from $85 to $110, with bids of $95 and above being successful. However, there are doubts about whether bids as low as $85 were accepted.
A token price of $95 represents a 26% discount compared to current prices, while a price of $110 corresponds to a 15% discount.
Galaxy Trading is once again raising funds from investors to bid for a portion of the locked Solana tokens from the estate, as reported by two sources. The firm aims to secure at least $5 million in commitments from investors, with the minimum investment requirements for this round being significantly higher.
Pantera Capital, as reported by Bloomberg, also participated in the latest auction, purchasing additional locked Solana tokens.
All the locked tokens being offered, including those purchased by Pantera Capital, are subject to a four-year vesting schedule.
The next auction is scheduled to begin on May 1, according to Mike Cagney, CEO of Figure Markets. Figure Markets is establishing a special purpose vehicle to bid for the locked SOL in upcoming auctions, which is open to both non-U.S. and accredited U.S. investors.
Prior to the current auction, the estate conducted a larger sale in March, with locked tokens being sold at $64 each. Demand was so high during that sale that allocations to investors in Galaxy Trading's syndicate had to be reduced. Bloomberg reported that the overall size of the sale was approximately two-thirds of the estate's 41 million Solana holdings.
The fact that the latest auctions are fetching even higher prices indicates the continued strong demand for the cryptocurrency.
Galaxy Asset Management, the entity responsible for handling the sales of the locked Solana on behalf of the FTX estate, declined to provide a comment. The FTX estate has not yet responded to a request for comment.
